The defendants moved to set aside a Mareva injunction granted ex parte that froze their assets in relation to allegations that interest payments received as trustee under a debenture had not been forwarded to the plaintiff debenture holder.
The defendants argued the injunction should be rescinded because the plaintiff failed to provide full and fair disclosure on the ex parte motion and lacked a strong prima facie case.
The court reviewed the disclosure obligations on ex parte motions and the test for material non-disclosure.
It found that the alleged omissions were either immaterial or adequately disclosed and that the evidence supported a strong prima facie case that trust funds had been misapplied.
The motion to set aside the Mareva injunction was therefore dismissed.
